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Celestica Inc. has announced revenue of $1.45 billion, at the midpoint of our Q2 2019 guidance range of $1.4 to $1.5 billion, decreased 15% compared to $1.70 billion for the second quarter of 2018.
"Celestica delivered second quarter results in line with our guidance, including another quarter of strong non-IFRS free cash flow," said Rob Mionis, President and CEO. "Our CCS segment delivered improved sequential and year-to-year margin performance and we continue to progress on our portfolio optimization actions."
"While the ongoing weak demand in our Capital Equipment business continues to adversely impact our ATS segment performance, our other ATS businesses are performing well, as we ramp new programs and continue to drive productivity. Despite the volatility, we believe that capital equipment remains an attractive market in the long term, and that we have the right strategy, relationships and capabilities in place to be successful in this business in future periods."
"As we navigate the challenging demand environment, we remain committed to executing our transformation plan. We believe that the end result will be a more diversified business, capable of delivering consistent, profitable growth."
Restructuring Update
We have recorded approximately $60 million in restructuring charges from the commencement of our cost efficiency initiative through the end of Q2 2019, including $9.0 million of restructuring charges recorded in Q2 2019. Based on current plans, we estimate total restructuring charges for this initiative to be at the high end of our previously disclosed range of $50 - $75 million, and continue to expect the remainder of the charges to be recorded by the end of 2019.
About Celestica
Celestica enables the world's best brands. Through our recognized customer-centric approach, we partner with leading companies in aerospace and defense, communications, enterprise, healthtech, industrial, capital equipment, and smart energy to deliver solutions for their most complex challenges. As a leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development - from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers.
